A bill to amend the Internal Revenue Code of 1986 to allow for payments to certain individuals who dye fuel, and for other purposes.

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1111 Introduced in Senate (IS)]

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119th CONGRESS
  1st Session
                                S. 1111

  To amend the Internal Revenue Code of 1986 to allow for payments to
       certain individuals who dye fuel, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             March 25, 2025

  Mr. Johnson (for himself and Ms. Baldwin) introduced the following
  bill; which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL

  To amend the Internal Revenue Code of 1986 to allow for payments to
       certain individuals who dye fuel, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

SECTION 1. PAYMENT TO CERTAIN INDIVIDUALS WHO DYE FUEL.

    (a) In General.--Subchapter B of chapter 65 of the Internal Revenue
Code of 1986 is amended by adding at the end the following new section:

``SEC. 6434. DYED FUEL.

    ``(a) In General.--If a person establishes to the satisfaction of
the Secretary that such person meets the requirements of subsection (b)
with respect to diesel fuel or kerosene, then the Secretary shall pay
to such person an amount (without interest) equal to the tax described
in subsection (b)(2)(A) with respect to such diesel fuel or kerosene.
    ``(b) Requirements.--
            ``(1) In general.--A person meets the requirements of this
        subsection with respect to diesel fuel or kerosene if such
        person removes from a terminal eligible indelibly dyed diesel
        fuel or kerosene.
            ``(2) Eligible indelibly dyed diesel fuel or kerosene
        defined.--The term `eligible indelibly dyed diesel fuel or
        kerosene' means diesel fuel or kerosene--
                    ``(A) with respect to which a tax under section
                4081 was previously paid (and not credited or
                refunded), and
                    ``(B) which is exempt from taxation under section
                4082(a).
    ``(c) Cross Reference.--For civil penalty for excessive claims
under this section, see section 6675.''.
    (b) Conforming Amendments.--
            (1) Section 6206 of the Internal Revenue Code of 1986 is
        amended--
                    (A) by striking ``or 6427'' each place it appears
                and inserting ``6427, or 6434''; and
                    (B) by striking ``6420 and 6421'' and inserting
                ``6420, 6421, and 6434''.
            (2) Section 6430 of such Code is amended--
                    (A) by striking ``or'' at the end of paragraph (2),
                by striking the period at the end of paragraph (3) and
                inserting ``, or'', and by adding at the end the
                following new paragraph:
            ``(4) which are removed as eligible indelibly dyed diesel
        fuel or kerosene under section 6434.''.
            (3) Section 6675 of such Code is amended--
                    (A) in subsection (a), by striking ``or 6427
                (relating to fuels not used for taxable purposes)'' and
                inserting ``6427 (relating to fuels not used for
                taxable purposes), or 6434 (relating to eligible
                indelibly dyed fuel)''; and
                    (B) in subsection (b)(1), by striking ``6421, or
                6427,'' and inserting ``6421, 6427, or 6434,''.
            (4) The table of sections for subchapter B of chapter 65 of
        such Code is amended by adding at the end the following new
        item:

``Sec. 6434. Dyed fuel.''.
    (c) Effective Date.--The amendments made by this section shall
apply to eligible indelibly dyed diesel fuel or kerosene removed on or
after the date that is 180 days after the date of the enactment of this
section.
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